Sheffield and Leeds-based data science agency Jaywing has reported a notable 13.3% increase in Group Adjusted EBITDA, climbing to £2.2m, for the financial year ending in March 2024. This achievement comes in spite of a 2.8% decline in overall revenues, highlighting the company’s ability to navigate a challenging market environment.
The improvement in EBITDA was largely fuelled by significant growth in the Australian market, contrasting with the difficulties faced by the UK sector, which saw a 16.7% decrease in UK Adjusted EBITDA. Jaywing anticipates better cash flow and stability in the latter part of the current year, supported by recent restructuring efforts, cost-saving measures, and new business acquisitions.
The company’s audited results revealed revenues of £21.5m for the year ending 31 March 2024, down from £22.1m the previous year, and a pre-tax loss of £2.4m, which is a considerable improvement from the £12.5m pre-tax loss recorded in 2023. David Beck, the executive chairman, commented on the period of significant change and recovery the group is undergoing. He noted that while the financial year 2024 reflects early progress, the full impact of cost-reduction strategies will be more evident in the current financial year.
UK market conditions remain challenging, yet the UK operations have become leaner and more efficient, thereby better positioned to convert future revenue growth into profit and cash. Leadership changes, a greater emphasis on marketing the group’s data and creative skills, and investments in client growth are positively influencing operational performance, although cash management remains a critical focus.
Furthermore, the tough economic environment, higher interest rates, and falling consumer confidence have all contributed to a challenging trading period in the UK. Jaywing’s annual report is available online, and a general meeting is scheduled for 26th September 2024.
Jaywing’s strategic adjustments and resilience have yielded positive results in a difficult trading period. The company’s focus on efficiency and market adaptability positions it for potential recovery and growth in the upcoming financial periods.